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Institutional Reform in Indonesia's Food Security Sector: The Transformation of BULOG into a Public Corporation

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  • Yonekura, Hitoshi

Abstract

The National Food Logistics Agency (BULOG) which had managed food security, buffer-stock operations, and domestic food price stabilization through its monopoly over imports and distribution was reorganized into a public corporation, "Perum BULOG," in May 2003. This study investigates the background and the process of reforming BULOG, and seeks to clarify the characteristics and remaining problems of institutional reform implemented in Indonesia since the economic crisis and the impact of globalization. The major findings are: (1) the reforms led by the IMF and World Bank were an attempt to curtail the rent-creation mechanism inBULOG and to improve its corporate governance; (2) globalized and standardized modules of institutional reform methods were applied for reforming BULOG, but the implanted institutions will need substantial time to take root; (3) there is still a failure to coordinate among food security institutions, particularly between the Ministry of Agriculture and Perum BULOG.

Suggested Citation

  • Yonekura, Hitoshi, 2005. "Institutional Reform in Indonesia's Food Security Sector: The Transformation of BULOG into a Public Corporation," The Developing Economies, Institute of Developing Economies, Japan External Trade Organization(JETRO), vol. 43(1), pages 121-148, March.
  • Handle: RePEc:jet:deveco:v:43:y:2005:i:1:p:121-48
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    Citations

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    Cited by:

    1. Kadria, Mohamed & Boulila, Ghazi, 2012. "Le système de compensation en Tunisie : quelles réalités et quel avenir ? [The subsidy system in Tunisia: what realities and what future?]," MPRA Paper 60719, University Library of Munich, Germany.
    2. Anne Marie Thow & Sachin Kumar Sharma & Cut Novianti Rachmi, 2019. "An analysis of Indonesia’s shrinking food security policy space under the WTO," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 11(6), pages 1275-1287, December.
    3. Marks, Daan, 2010. "Unity or diversity? On the integration and efficiency of rice markets in Indonesia, c. 1920-2006," Explorations in Economic History, Elsevier, vol. 47(3), pages 310-324, July.
    4. Jacob Nerenberg, 2022. "‘Start from the Garden’: Distribution, Livelihood Diversification and Narratives of Agrarian Decline in Papua, Indonesia," Development and Change, International Institute of Social Studies, vol. 53(5), pages 987-1009, September.

    More about this item

    Keywords

    Indonesia; Food; Economic policy; Public enterprises; インドネシア; 食糧; 経済政策; 公企業;
    All these keywords.

    JEL classification:

    • L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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